Section 140 – Transitional arrangements for input tax credit of CGST ACT, 2017<\/p>\n
140. (1) A registered person, other than a person opting to pay tax under section 10,
\nshall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried
\nforward in the return relating to the period ending with the day immediately preceding the
\nappointed day, furnished by him under the existing law in such manner as may be prescribed:
\nProvided that the registered person shall not be allowed to take credit in the following
\ncircumstances, namely:\u2014
\n(i) where the said amount of credit is not admissible as input tax credit under this
\nAct; or
\n(ii) where he has not furnished all the returns required under the existing law for
\nthe period of six months immediately preceding the appointed date; or
\n(iii) where the said amount of credit relates to goods manufactured and cleared
\nunder such exemption notifications as are notified by the Government.
\n(2) A registered person, other than a person opting to pay tax under section 10, shall be
\nentitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in
\nrespect of capital goods, not carried forward in a return, furnished under the existing law by
\nhim, for the period ending with the day immediately preceding the appointed day in such
\nmanner as may be prescribed:
\nProvided that the registered person shall not be allowed to take credit unless the said
\ncredit was admissible as CENVAT credit under the existing law and is also admissible as input
\ntax credit under this Act.<\/p>\n
Explanation.\u2013\u2013For the purposes of this sub-section, the expression \u201cunavailed
\nCENVAT credit\u201d means the amount that remains after subtracting the amount of CENVAT
\ncredit already availed in respect of capital goods by the taxable person under the existing law
\nfrom the aggregate amount of CENVAT credit to which the said person was entitled in
\nrespect of the said capital goods under the existing law.
\n(3) A registered person, who was not liable to be registered under the existing law, or
\nwho was engaged in the manufacture of exempted goods or provision of exempted services,
\nor who was providing works contract service and was availing of the benefit of notification
\nNo. 26\/2012\u2014Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage
\ndealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his
\nelectronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs
\ncontained in semi-finished or finished goods held in stock on the appointed day subject to
\nthe following conditions, namely:\u2013\u2013
\n(i) such inputs or goods are used or intended to be used for making taxable
\nsupplies under this Act;
\n(ii) the said registered person is eligible for input tax credit on such inputs under
\nthis Act;
\n(iii) the said registered person is in possession of invoice or other prescribed
\ndocuments evidencing payment of duty under the existing law in respect of such
\ninputs;
\n(iv) such invoices or other prescribed documents were issued not earlier than
\ntwelve months immediately preceding the appointed day; and
\n(v) the supplier of services is not eligible for any abatement under this Act:
\nProvided that where a registered person, other than a manufacturer or a supplier of
\nservices, is not in possession of an invoice or any other documents evidencing payment of
\nduty in respect of inputs, then, such registered person shall, subject to such conditions,
\nlimitations and safeguards as may be prescribed, including that the said taxable person shall
\npass on the benefit of such credit by way of reduced prices to the recipient, be allowed to
\ntake credit at such rate and in such manner as may be prescribed.
\n(4) A registered person, who was engaged in the manufacture of taxable as well as
\nexempted goods under the Central Excise Act, 1944 or provision of taxable as well as exempted
\nservices under Chapter V of the Finance Act, 1994, but which are liable to tax under this Act,
\nshall be entitled to take, in his electronic credit ledger,\u2014
\n(a) the amount of CENVAT credit carried forward in a return furnished under the
\nexisting law by him in accordance with the provisions of sub-section (1); and
\n(b) the amount of CENVAT credit of eligible duties in respect of inputs held in
\nstock and inputs contained in semi-finished or finished goods held in stock on the
\nappointed day, relating to such exempted goods or services, in accordance with the
\nprovisions of sub-section (3).
\n(5) A registered person shall be entitled to take, in his electronic credit ledger, credit of
\neligible duties and taxes in respect of inputs or input services received on or after the
\nappointed day but the duty or tax in respect of which has been paid by the supplier under the
\nexisting law, subject to the condition that the invoice or any other duty or tax paying document
\nof the same was recorded in the books of account of such person within a period of thirty
\ndays from the appointed day:
\nProvided that the period of thirty days may, on sufficient cause being shown, be
\nextended by the Commissioner for a further period not exceeding thirty days:
\nProvided further that said registered person shall furnish a statement, in such manner
\nas may be prescribed, in respect of credit that has been taken under this sub-section<\/p>\n
(6) A registered person, who was either paying tax at a fixed rate or paying a fixed
\namount in lieu of the tax payable under the existing law shall be entitled to take, in his
\nelectronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs
\ncontained in semi-finished or finished goods held in stock on the appointed day subject to
\nthe following conditions, namely:\u2013\u2013
\n(i) such inputs or goods are used or intended to be used for making taxable
\nsupplies under this Act;
\n(ii) the said registered person is not paying tax under section 10;
\n(iii) the said registered person is eligible for input tax credit on such inputs
\nunder this Act;
\n(iv) the said registered person is in possession of invoice or other prescribed
\ndocuments evidencing payment of duty under the existing law in respect of inputs;
\nand
\n(v) such invoices or other prescribed documents were issued not earlier than
\ntwelve months immediately preceding the appointed day.
\n(7) Notwithstanding anything to the contrary contained in this Act, the input tax credit
\non account of any services received prior to the appointed day by an Input Service Distributor
\nshall be eligible for distribution as credit under this Act even if the invoices relating to such
\nservices are received on or after the appointed day.
\n(8) Where a registered person having centralised registration under the existing law
\nhas obtained a registration under this Act, such person shall be allowed to take, in his
\nelectronic credit ledger, credit of the amount of CENVAT credit carried forward in a return,
\nfurnished under the existing law by him, in respect of the period ending with the day
\nimmediately preceding the appointed day in such manner as may be prescribed:
\nProvided that if the registered person furnishes his return for the period ending with
\nthe day immediately preceding the appointed day within three months of the appointed day,
\nsuch credit shall be allowed subject to the condition that the said return is either an original
\nreturn or a revised return where the credit has been reduced from that claimed earlier:
\nProvided further that the registered person shall not be allowed to take credit unless
\nthe said amount is admissible as input tax credit under this Act:
\nProvided also that such credit may be transferred to any of the registered persons
\nhaving the same Permanent Account Number for which the centralised registration was
\nobtained under the existing law.
\n(9) Where any CENVAT credit availed for the input services provided under the existing
\nlaw has been reversed due to non-payment of the consideration within a period of three
\nmonths, such credit can be reclaimed subject to the condition that the registered person has
\nmade the payment of the consideration for that supply of services within a period of three
\nmonths from the appointed day.
\n(10) The amount of credit under sub-sections (3), (4) and (6) shall be calculated in
\nsuch manner as may be prescribed.
\nExplanation 1.\u2014For the purposes of sub-sections (3), (4) and (6), the expression
\n\u201celigible duties\u201d means\u2013\u2013
\n(i) the additional duty of excise leviable under section 3 of the Additional Duties
\nof Excise (Goods of Special Importance) Act, 1957;
\n(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs
\nTariff Act, 1975;
\n(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs
\nTariff Act, 1975;<\/p>\n
(iv) the additional duty of excise leviable under section 3 of the Additional
\nDuties of Excise (Textile and Textile Articles) Act, 1978;
\n(v) the duty of excise specified in the First Schedule to the Central Excise Tariff
\nAct, 1985;
\n(vi) the duty of excise specified in the Second Schedule to the Central Excise
\nTariff Act, 1985; and
\n(vii) the National Calamity Contingent Duty leviable under section 136 of the
\nFinance Act, 2001,
\nin respect of inputs held in stock and inputs contained in semi-finished or finished goods
\nheld in stock on the appointed day.
\nExplanation 2.\u2014For the purposes of sub-section (5), the expression \u201celigible duties
\nand taxes\u201d means\u2013\u2013
\n(i) the additional duty of excise leviable under section 3 of the Additional Duties
\nof Excise (Goods of Special Importance) Act, 1957;
\n(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs
\nTariff Act, 1975;
\n(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs
\nTariff Act, 1975;
\n(iv) the additional duty of excise leviable under section 3 of the Additional
\nDuties of Excise (Textile and Textile Articles) Act, 1978;
\n(v) the duty of excise specified in the First Schedule to the Central Excise Tariff
\nAct, 1985;
\n(vi) the duty of excise specified in the Second Schedule to the Central Excise
\nTariff Act, 1985;
\n(vii) the National Calamity Contingent Duty leviable under section 136 of the
\nFinance Act, 2001; and
\n(viii) the service tax leviable under section 66B of the Finance Act, 1994,
\nin respect of inputs and input services received on or after the appointed day<\/p>\n","protected":false},"excerpt":{"rendered":"
Section 140 – Transitional arrangements for input tax credit of CGST ACT, 2017 140. (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with … Continue reading “Section 140 – Transitional arrangements for input tax credit of CGST ACT, 2017”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/411"}],"collection":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/comments?post=411"}],"version-history":[{"count":1,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/411\/revisions"}],"predecessor-version":[{"id":412,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/411\/revisions\/412"}],"wp:attachment":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/media?parent=411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/categories?post=411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/tags?post=411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}